George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
It is the highest price paid by the buyer (which is the price in the RNS) but also why would they invest even at this price if they did not see considerable upside to the SP with limited risks. Banks can make money just by lending without buying the stock but this is the choice they made and at a premium to the current price - gives me some confidence but this dilution just means that we have lost more trust in Dan and also the upside is more limited. Personally I have a 12.2p average so not massively underwater but did expect this to hit around 20p once new mine was on board. Now would be happy with 15p.
Actually - A firm first tranche of US$5.5 million, which involves the issue of 38,576,805 Subscription Shares (the "First Tranche Shares"), including the issue of 35,057,991 Subscription Shares to CIG, which will result in a CIG holding of 29.9% in the Company will be taken up at the price by CIG is my understanding. The rest is not guaranteed. So CIG will become 29.9% holders no matter what as a minimum.
Thinking about this all - I still can’t understand why this is being done? Even in the presentation yesterday he again reiterated being a 200000 oz per year producer and if that is true then we much be near or hitting commercial production as this would not be possible otherwise! So why?
Don't really comment that much on these boards but agree that how this has been handled by DB shows total contempt for shareholders - having videos stating 200,000 oz per year, every presentation saying the same, no issues every considered and asking hard -earned money to be put into the company to then realize it was all lies! We seem to be the only ones taking the risks and tbh does indicate where we are positioned in his thought process (all suckers!). Still holding but not a happy camper
There is some correlation but not quite 100% correct. Look at production and aisc for last 4 quarters at yanfolia which proves this point - aisc was lowest not when we had highest production. Know they changed contractors which demonstrates other factors can make a significant difference. Indeed hummingbird have stated $1000 aisc for both initial 120000 per year and also when they reduced it to 100000 per year for the new mine
If Kouroussa comes on line and produces even 60,000 per annum instead of the quoted 120,000 (changed to 100,000 oz per annum recently) then we would be fine from a debt payment perspective so there is quite a margin for error. This is also based on AISC being higher than anticipated at $1300 due to lower gold produced and also gold price being only $2000. SO there are still some risks but they are not that likely if we come in at anything near expected production and AISC
Well I have just bought in today - hopefully it will progress upwards from here as I see a lot of reasons why the SP could rise - interest rates dropping, sale of US business, increasing margins with renegotiation of contracts etc. Think this price is pretty good and hopefully we all make a decent profit and have future dividends to look forward too :)
Tbh if we were told gold would be over $2000 we would have been happy - can’t see it going down much from here and with interest rates cuts in the future will move up - looking good for gold over this whole year! Hopefully the gold will come out the ground fine in the new mine!!
Today will be a big jump for all gold companies - gold at ath even with the relatively high interest rates is great for us as when rates go down gold should also go up more - so if we get the gold out the ground we will be paid handsomely!!
Now we simply need name plate (don’t care if it is under expectations as if still over 80000 per year this will rocket). Also if we forecast even anything over 160000 per year with an aisc under 1400 I will be happy and the sp will rise significantly. Trying to manage my own expectations here as DB talks better than he delivers
Now ask yourself - what do you think DB will want to do? We are $150m in debt at present via taking lots of risks and built the new mine when not even having our aisc under control as he is a risk taker
Not disagreeing there are risks but they are not large as you would imagine as the debt only builds up incrementally (and my figures were based on 1750 Pog and 1250 aisc) for the $100m fcf each year which is not too onerous and means we build up a $50m buffer by end of 2025 as only $150m debt. Lower aisc as kourossa is low cost. Indeed at $1300 Pog we would struggle in all scenarios but dugbe actual would derisk us as it is also low cost and a large producer. With current Pog starting end of 2025 is east as we should make $150 fcf (based on Pog 2000 and aisc of 1250) so would have near $150m buffer